3 ms·
Existing model of financing long-term game-changing next-big-thing companies via equity dilution with angel/venture financing is less optimal from the founders'
by daemon13 13y ago
Existing model of financing long-term game-changing next-big-thing companies via equity dilution with angel/venture financing is less optimal from the founders' perspective than pursuing another feature start-up.
More risk, less equity, success is uncertain, reward far away in the future - why bother with making world better?
My 2 cents :-)
P.S.: a better model might be if the founder pursuing next-big-thing commits to certain ROI for investors (2-3-5 times on capital), thus increasing this founder's potential upside and motivation to go the hard way. Critique and suggestions are welcome.